New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
intermediate financial management

Financial Management And Policy 12th Edition James C. Van Horne - Solutions

7-12 Give an example of a company that is countering this trend by offering more realistic dolls for young girls.(AACSB: Communication; Reflective thinking) pg96
7-10 Can manufacturers use SoLoMo? Find examples of or make suggestions as to how manufacturers can use this type of targeting. (AACSB: Communication; Reflective thinking) pg96
7-9 Search the Internet to find examples of retailers using SoLoMo and similar new technologies to target and engage potential customers, or describe your personal experience as a shopper in this type of retail technology environment. (AACSB: Communication; Use of IT; Reflective thinking) pg96
7-6 Advertisers use market segmentation when promoting products to consumers. For each major consumer segmention variable, find an example of a print ad that appears to be based on that variable. For each ad, identify the target market and explain why you think the advertiser is using the
show. What competitive advantage does the show pg96 have over existing shows? How many and which differences would you promote? (AACSB: Communication;Reflective thinking) pg96
7-8 Form a small group and create an idea for a new reality television show. Using the approach provided in the chapter, develop a positioning statement for this television
7-5 Discuss the criteria that should be evaluated in determining which differences a company should promote in its products. (AACSB: Communication) pg96
7-4 Explain how a company differentiates its products from competitors’ products. (AACSB: Communication) pg96
7-3 Explain how companies segment international markets.(AACSB: Communication) pg96
7-2 Compare and contrast consumer and business market segmentation. (AACSB: Communication) pg96
7-1 Name and describe the four major steps in designing a customer-driven marketing strategy. (AACSB:Communication) pg96
4. How can the Industrial Internet potentially benefit B-to-C markets and customers? What impact might it have and in what ways? pg96
3. B-to-B marketers at GE used the creative concept of Datalandia to promote the potential benefits of the Industrial Internet. What approach to marketing the Industrial Internet would you take to a variety of B-to-B stakeholders such as customers, the business media and government accounts? pg96
2. Business buyers focus on benefits (e.g. cost savings through equipment efficiency) rather than features (e.g. the colour of a piece of equipment). What are the potential benefits of the Industrial Internet for business buyers? pg96
1. What are the specific benefits of the Industrial Internet for each member of the buying centre? What is the key message that needs to be communicated to each member? pg96
6-15 If each sales rep earns a salary of €60,000 per year, what sales are necessary to break even on the sales force costs if the company has a contribution margin of 40 per cent?What effect will adding each additional sales representative have on the break-even sales? (AACSB:
6-14 Refer to Appendix 2: Marketing by the numbers to determine the number of salespeople a company needs if it has 3,000 customers who need to be called on ten times per year. Each sales call lasts approximately 2.5 hours, and each sales rep has approximately 1,250 hours per year to devote to
6-9 Research mobile procurement and discuss the roles in the buying centre that are impacted most by this technology.(AACSB: Communication; Reflective thinking) pg96
6-8 Discuss the advantages of e-procurement to both buyers and sellers. What are the disadvantages? (AACSB: Communication;Reflective thinking) pg96
6-13 How would other company employees interpret your acceptance of this invitation? pg96
6-12 Do you think the supplier will expect ‘special’ treatment in the next buying situation? pg96
6-11 Just because it is not specifically mentioned in the employee manual, would you be acting ethically if you accepted? pg96
6-10 Do you accept or decline the invitation? pg96
6-6 Kaizen. Seiri. Seiton. Seiso. Seiketsu. Shitsako. Jishuken .These Japanese words are related to continuous quality pg96 improvement and are applied in supplier development programmes, particularly Toyota’s. Research Toyota’s Production System (TPS) and describe how these concepts are
6-5 Compare the institutional and government markets and explain how institutional and government buyers make their buying decisions. (AACSB: Communication) pg96
6-4 List the steps for a typical new task buying process.What is product value analysis and in which step of the buying process does it occur? (AACSB: Communication;Reflective thinking) pg96
6-3 Discuss the major influences on business buyers.(AACSB: Communication) pg96
6-2 Explain what is meant by systems selling and discuss why it is a preferred approach to buying for many organisations. (AACSB: Communication; Reflective thinking) pg96
6-1 Explain how the market structure and demand differ for business markets compared to consumer markets.(AACSB: Communication; Reflective thinking) pg96
➤ Objective 4 Compare the institutional and government markets and explain how institutional and government buyers make their buying decisions. pg96 Institutional and government markets (pp. 180–182)
➤ Objective 3 List and define the steps in the business buying decision process. pg96 pg96E-procurement and online purchasing (pp. 179–180) pg96
➤ Objective 2 Identify the major factors that influence business buyer behaviour.Business buyer behaviour (pp. 172–176) pg96
➤ Objective 1 Define the business market and explain how business markets differ from consumer markets.Business markets (pp. 170–172) pg96
5. What role does the Porsche brand play in the self-concept of its buyers? pg96
4. Explain how both positive and negative attitudes toward a brand like Porsche develop. How might Porsche change consumer attitudes toward the brand? pg96
3. Which concepts from the chapter explain why Porsche sold so many lower-priced models in the 1970s and 1980s? pg96
2. Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or Panamera customer. pg96
1. Analyse the buyer decision process of a traditional Porsche customer. pg96
5-9 Summarise the FTC’s disclosure rules on using social media to promote products and services. Does the blogger you reviewed in the previous question follow these rules? Explain. (AACSB: Communication; Reflective thinking)pg96
5-8 Find an example of a blog on a topic that interests you.Are there advertisements on the blog? Does the blogger appear to be sponsored by any companies? Is there information regarding sponsorship? Write a brief report of your observations. (AACSB: Use of IT; Communication;Reflective thinking)pg96
c. Ten percent of 70 percent of $400,000 for 6 months = $14,000 Field warehousing cost = 10,000 Cash discount forgone to extend payables from 10 days to 40 days Total cost = $38,898 The terminal warehouse receipt loan results in the lowest cost.
b. $400,000 X 20% X 4 year
5.a. Twelve percent of 80 percent of $400,000 for 6 months = $19,200 Warehousing cost = 7,000 Cash discount forgone to extend payables from 10 days to 40 days($ x g) ($80,000) (f year) = ,443 X 80,000 X .5 Total cost
c. Cost of factoring: The factor fee for the year would be The savings effected, however, would be $18,000, giving a net factoring cost of $6,000. Borrowing $75,000 on the receivables would thus cost Bank borrowing would be the cheapest source of funds.518 Part V L i q u i d i t y a n d Working
b. Cost of bank loan: Assuming the compensating balance would not otherwise be maintained, the cost would be
4.a. Cost of trade credit: If discounts are not taken, up to $97,000 can be raised after the second month. The cost would be
3. New average amount of accrued wages = ($130,000) -(:2) (?I 1 ,\,= $60,000(Note: Fifty-two is the number of paydays in a year if wages are paid weekly;24 is the number if wages are paid twice a month.)Decrease in average accrued wages = $130,000 - $60,000= $70,000 Cost = $70,000 X .09 = $6,300
c. Assuming that the firm has made the decision not to take the cash discount, it makes no sense to pay before the due date. In this case, payment 30 days after purchases are received rather than 15 would reduce the annual interest cost to 37.2 percent.
2.a. Grind is confusing the percentage cost of using funds for 5 days with the cost of using funds for a year. These costs are clearly not comparable.One must be converted to the time scale of the other.
1. The total estimated annual costs for the three strategies are Strategy A B C Total cost 1 $1,900,000 $1,920,000 $1,875,000 Chapter 16 Liability Management and ShortlMedium-Term Financing 517 Strategy C, involving the highest portion of long-term debt, is best, despite the higher interest cost.
c. How can the debt holders protect themselves?m ,,,* Solutions to Self- Correction Problems
b. If the company goes into a new, riskier toy line that increases the standard deviation to .50, what will be the effect on the value of the debt?
a. Using the Black-Scholes option model, Eq. (5-2) in Chapter 5, determine the value of the equity and the value of the debt. . .
15. Max-Fli Toy Company currently has a total value of $10 million. The face value of the debt outstanding is $7 million, and it is represented by discount bonds that all mature in 4 years. The standard deviation of the continuously compounded rate of return on the total value of the firm is .30.
The proceeds of the term loan will be used to increase Sharpe's investment in inventories and receivables in response to introducing a new "closer-to-theface"razor blade. The company anticipates a subsequent need to grow at a rate of 24 percent a year, equally divided between current assets and net
14. On January 1, Sharpe Razor Corporation is contemplating a 4-year, $3 million term loan from the Fidelity First National Bank. The loan is payable at the end of the fourth year and would involve a loan agreement containing a number of protective covenants. Among these restrictions are the
13. Vesco-Zultch Corporation is a chain of appliance stores in Chicago. It needs to finance all of its inventories, which average the following during the four quarters of the year (in thousands):Inventory level / $1,600 $2,100 $1,500 $3,200 Quarters Vesco-Zultch presently utilizes a finance
b. A bad-debt expense of 1 percent on credit sales The firm's bank has recently offered to lend the firm up to 80 percent of the face value of the receivables shown on the schedule of accounts. The bank would charge 15 percent per annum interest plus a 2 percent monthly processing charge per dollar
a. $2,000 per month that would be required to support a credit department
12. The Bone Company has been factoring its accounts receivable for the past 5 years. The factor charges a fee of 2 percent and will lend up to 80 percent of the volume of receivables purchased for an additional 1.5 percent per month.The firm typically has sales of $500,000 per month, 70 percent of
b. The Zarlotti Finance Company will lend the company the money under a floating lien on all of its inventories. The rate is 23 percent, but no additional expenses will be incurred.
a. The Cody National Bank of Reno will lend against finished goods, provided that they are placed in a public warehouse under its control.As the finished goods are released for sale, the loan is reduced by the proceeds of the sale. The company currently has $300,000 in finished goods inventories
11. The Selby Gaming Manufacturing Company has experienced a severe cash squeeze and must raise $200,000 over the next 90 days. The company has already pledged its receivables in support of a loan. Still, it has $570,000 in unencumbered inventories. Determine which of the following financing
10. Fritz-Polakoff Finance Company makes a variety of secured loans. Both the percentage of advance and the interest rate charged vary with the marketability, life, and riskiness of the collateral. It has established the following advances and interest-rate charges for certain types of
c. 6 percent loan on an add-on basis, with equal quarterly payments required on the initial face value.Which alternative has the lowest effective yield, using annual compounding for the first two and quarterly compounding for the last?
b. 8.4 percent loan on a discount basis, with face value due at the end.
a. 9 percent loan on a collect basis, with face value due at the end.
9. Castellanos Company wishes to borrow $100,000 for 1 year. It must choose one of the following alternatives.
c. Issue commercial paper at 12 percent. The cost of placing the issue would be $100,000 each 6 months.Assuming that the firm would prefer the flexibility of bank financing, provided the additional cost of this flexibility is no more than 2 percent, which alternative should Sphinx select?
b. Borrow from the bank at 15 percent. This alternative would necessitate maintaining a 12 percent compensating balance.
a. Forgo cash discounts, granted on a basis of 3/10, net 30.
8. The Sphinx Supply Company needs to increase its working capital by $10 million. It has decided that there are essentially three alternatives of financing available:
7. Commercial paper has no stipulated interest rate. It is sold on a discount basis, and the amount of the discount determines the interest cost to the issuer. On the basis of the following information, determine the percentage interest cost on an annual basis for each of the following issues.514
6. The Fox Company is able to sell $1 million of commercial paper every 3 months at a rate of 10 percent and a placement cost of $3,000 per issue. The dealers require Fox to maintain bank lines of credit demanding $100,000 in bank balances, which otherwise would not be held. Fox has a 40 percent
5. On January 1, Faville Car Company, a large car dealer, gave its employees a 10 percent pay increase in view of the substantial profits the preceding year. Before the increase, the weekly payroll was $50,000. What is the effect of the change on accruals?
4. Recompute Problem 2, assuming a 10-day stretching of the payment date.What is the major advantage of stretching? What are the disadvantages?
3. Does the dollar size of the invoice affect the percentage annual interest cost of not taking discounts? Illustrate with an example.
d. 3/10, net 30 ($250 invoice).
c. 2/5, net 10 ($100 invoice).
b. 2/30, net 60 ($1,000 invoice).
a. 1/20, net 30 ($500 invoice).
2. Determine the annual percentage interest cost for each of the following terms of sale, assuming the firm does not take the cash discount but pays on the final day of the net period (assume a 365-day year).
b. Are there other considerations in addition to expected cost?
a. Determine the total dollar borrowing costs for short- and intermediateterm debt under each of the three alternatives for the coming year.(Assume there are no changes in current liabilities other than borrowings.)Which is lowest?
1. Mendez Metal Specialities, Inc., has a seasonal pattern to its business. It borrows under a line of credit from Central Bank at 1 percent over prime. Its total Chapter 16 Liability Management and Short/Medium-Term Financing 513 asset requirements now (at year end) and estimated requirements for
c. A field warehouse loan from another finance company at an interest rate of 10 percent annualized. The advance is 70 percent, and field warehousing costs amount to $10,000 for the 6-month period. The residual financing requirement will need to be financed by forgoing cash discounts on payables as
b. A floating lien arrangement from the supplier of the inventory at an effective interest rate of 20 percent. The supplier will advance the full value of the inventory.
a. Terminal warehouse receipt loan from a finance company. Terms are 12 percent annualized with an 80 percent advance against the value of the inventory. The warehousing costs are $7,000 for the Bmonth period. The residual financing requirement, which is $400,000 less the amount advanced, will need
. The Kedzie Cordage Company needs to finance a seasonal bulge in inventories of $400,000. The funds are needed for 6 months. The company is considering the following possibilities:
c. A factor will buy the company's receivables ($100,000 per month), which have a collection period of 60 days. The factor will advance up to 75 percent of the face value of the receivables at 12 percent on an annual basis.The factor will also charge a 2 percent fee on all receivables purchased. It
b. Bank loan: the firm's bank will lend $100,000 at 13 percent. A 10 percent compensating balance will be required, which otherwise would not be m;intainedby the company - ~
a. Trade credit: the company buys about $50,000 of materials per month on terms of 3/30, net 90. Discounts are taken.
4. The Barnes Corporation has just acquired a large account. As a result, it needs an additional $75,000 in working capital immediately. It has been determined that there are three feasible sources of funds:
3. The Halow Harp and Chime Company is negotiating a new labor contract.Among other things, the union is demanding that the company pay its workers weekly instead of twice a month. The payroll currently is $260,000 per payday, and accrued wages average $130,000. What is the annual cost of the
c. If the firm could not borrow from the bank and was forced to resort to the use of trade credit funds, what suggestion might be made to Grind that would reduce the annual interest cost?512 Part V Liquidity and Working Capital Management
b. What is the real cost of not taking advantage of the discount?
a. What mistake is Grind making?
2. The Dud Company purchases raw materials on terms of 2/10, net 30. A review of the company's records by the owner, Mr. Dud, revealed that payments are usually made 15 days after purchases are received. When asked why the firm did not take advantage of its discounts, the bookkeeper, Mr. Grind,
A short-, All unsecured $1,400,000 $300,000 $200,000 medium-, t long-term debt B 3 short-, Unsecured 1,520,000 250,000 150,000 + medium-, Secured + long-term debt Unsecured C short-, Unsecured 1,600,000 200,000 75,000 medium-, Secured$ long-term debt Secured
1. The Hollezorin Company must decide among three liability strategies, which differ in maturity structure and type of securities. For each strategy, the annual interest costs, the annual flotation costs, and the annual expected bankruptcy costs (probability weighted) are estimated. On the basis of

Showing 2300 - 2400 of 3729

First
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved